Bad Faith


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Bad Faith

The fraudulent deception of another person; the intentional or malicious refusal to perform some duty or contractual obligation.

Bad faith is not the same as prior judgment or Negligence. One can make an honest mistake about one's own rights and duties, but when the rights of someone else are intentionally or maliciously infringed upon, such conduct demonstrates bad faith.

The existence of bad faith can minimize or nullify any claims that a person alleges in a lawsuit. Punitive Damages, attorney's fees, or both, may be awarded to a party who must defend himself or herself in an action brought in bad faith.

Bad faith is a term commonly used in the law of contracts and other commercial dealings, such as Commercial Paper, and in Secured Transactions. It is the opposite of Good Faith, the observance of reasonable standards of fair dealings in trade that is required of every merchant.

A government official who selectively enforces a nondiscriminatory law against the members of a particular group or race, thereby violating the Civil Rights of those individuals, is acting in bad faith.

bad faith

1) n. intentional dishonest act by not fulfilling legal or contractual obligations, misleading another, entering into an agreement without the intention or means to fulfill it, or violating basic standards of honesty in dealing with others. Most states recognize what is called "implied covenant of good faith and fair dealing" which is breached by acts of bad faith, for which a lawsuit may be brought (filed) for the breach (just as one might sue for breach of contract). The question of bad faith may be raised as a defense to a suit on a contract. 2) adj. when there is bad faith then a transaction is called a "bad faith" contract or "bad faith" offer. (See: good faith, fraud, clean hands doctrine)

References in periodicals archive ?
"The facts presented in the record and briefing show some frustrating delays caused by both parties during a lengthy discovery period, but the Court finds no bad faith on Plaintiff's part related to the delay in her deposition.
District courts have spent the better part of seven years wrestling with the practical application of the bad faith exception.
Related: Appeals court resurrects $5M bad faith lawsuit against insurance company
The Court of Appeal took up the matter and while it did uphold the primary decision, it also addressed the issue of bad faith in trademark infringement and identified a list of criteria to determine bad faith.
The Third Circuit first held that an involuntary petition may be dismissed as a bad faith filing even where the petitioning creditors had satisfied all of Bankruptcy Code Section 303's requirements for an involuntary bankruptcy filing.
The bad faith litigation was on behalf of 40 health-care providers, although it was expected to expand to include all of the approximately 441 PIP clients.
In the second lawsuit, Perdido Sun alleged a statutory first-party bad faith claim, pursuant to section 624.155(1), Florida Statutes (2009).
(6) This is the rule, irrespective of whether bad faith is alleged with the breach of contract action or brought separately.
National Union provides a comprehensive summary of the current California bad faith standards.
Supreme Court made it easier for the winners of patent litigation to recover attorney's fees, and made it easier to challenge abstract patents, which are most ripe for bad faith assertions.
Under federal law, a debtor's estate consists of "all legal or equitable interests of the debtor in property as of the commencement of the case." Without actual knowledge or willful ignorance at the time the statement is made, there can be no bad faith.